Invest in health and education, Christine Lagarde says

International Monetary Fund chief Christine Lagarde says governments should invest in health and education as a priority, and act to reduce the impact of climate change even without an international agreement.

The managing director of the global economic body, who is in Sydney ahead of the G20 meetings, said there was a role for public spending in large infrastructure projects as well as in health and education.

''Clearly investing in health, investing in education, making sure there are equal opportunities for all is something where public money is needed,'' Ms Lagarde said on Thursday in response to a question on the ABC's Q&A program on federal Treasurer Joe Hockey's call for the end of ''the age of entitlement''.

''It's not a question of … entitlement.''

Ms Lagarde, who was careful not to directly criticise the federal government, said that while there were different approaches to tackling climate change, the issue had to be dealt with both at a local and international level. ''My personal firm belief is that we cannot wait until an international body or an international agreement is actually found or reached to actually address the issue,'' she said. ''There are multiple ways to deal with it, but it has to be dealt with.''

She warned the US Federal Reserve as it winds back its extraordinary stimulus program that it should be mindful of the impact of the withdrawal on other countries, and to be clear about what actions it would be taking.

The G20 meeting is the first meeting of finance ministers and central bankers since the US started to reduce its monetary stimulus amid signs of a sustained recovery.